Compass agent Kyle Blackmon simply made a fairly penny off his firm’s inventory.
However it wasn’t for promoting excessive or shopping for low. The veteran New York Metropolis luxurious dealer was awarded $5.5 million by a Monetary Business Regulatory Authority (FINRA) arbitration panel in a grievance he introduced in opposition to UBS Monetary Companies over the way it dealt with his Compass inventory choices and shares.
In January 2025, Blackmon introduced a grievance to FINRA, which regulates the monetary brokerage business, accusing UBS of mishandling his unexercised inventory choices round Compass’ preliminary public providing.
Compass went public in 2021 with a share worth round $20, however watched its inventory fall to as little as $2 as rates of interest spiked and the housing market cratered within the coming years. Its worth has since rebounded because the brokerage’s development has continued to outpace the housing market and Compass has delivered cash-flow constructive quarters in recent times.
The suggestions at situation concerned “very advanced” buying and selling methods, an individual acquainted with Blackmon’s declare advised AdvisorHub. Blackmon claimed that UBS breached its fiduciary responsibility and violated an SEC rule governing how broker-dealers advise their purchasers, in accordance with the arbitration award printed by FINRA.
The hearings lasted over 9 days beginning on Jan. 26 and occurred earlier than a two-person panel in Boca Raton, Florida. Blackmon is registered in each New York and Florida.
Blackmon didn’t reply to a request for remark. An legal professional for UBS didn’t reply to a request for remark.
Blackmon made waves within the business when he joined the fledgling Compass — then City Compass — in 2014. He had beforehand spent greater than a decade at Brown Harris Stevens, the place he made a reputation for himself when he offered former Citigroup chairman Sanford Weill’s penthouse residence at 15 Central Park West for $88 million, a report worth within the metropolis on the time.
At Compass, Blackmon, who has been described as a prototypical Southern gentleman, has continued to be a gradual producer. He ranked twenty sixth in The Actual Deal’s high agent rankings by deal quantity in 2019.
His purchasers have included the previous CEO of NBCUniversal, whose co-op Blackmon offered this week for $15 million, to Rupert Murdoch, whose Flatiron penthouse Blackmon offered for $24 million in 2024.
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